Budget - 2010

2010 Budget Addresses Falling Revenues
The 2010 budget passed by the Village Board at its December 14, 2009, meeting reflects a marked decline of revenues, program and service level reductions, and a personnel expenditure reduction plan that includes unpaid furlough days for employees and a moratorium on cost of living increases.

Each year, the Village's financial condition is carefully evaluated by reviewing expenditures, measuring the efficiency of the provision of municipal services, and planning for the future needs of the community. This year's planning process was greatly influenced by the economic downturn that has gripped the country for the last 12 to 18 months. Revenues, such as state-shared sales and income taxes, have declined at an unparalleled rate.

For 2010, total budgeted revenues are $35,286,546 and total budgeted expenditures are $35,370,221. While Roselle residents continue to receive excellent police and fire protection, water and sewer service, public works and general administrative services, revenue shortfalls require reductions of some non-essential services. The Village's brush pickup and 50/50 tree replacement programs, entertainment at Village-sponsored special events, and crime prevention programs, such as D.A.R.E., have been eliminated.

The budget also reflects the reorganization of several departments and the consolidation of emergency 9-1-1 communications services to DU-COMM. This reorganization and consolidation has reduced full-time staffing levels from 115 employees to 103 employees.

In addition to these program, service, and staffing level reductions, a personnel expenditure reduction plan was implemented in the fall of 2009 to mitigate a $1million revenue shortfall the Village experienced in 2009. All non-union employees are required to take one unpaid furlough day each month, and pay and other compensation increases are on hold until 2011. The Village's public works and firefighter union employees have signed similar agreements requiring unpaid compensation and benefits for these employees.

Negotiations with police officer union employees on similar concessions remain at an impasse. Therefore, two police officers were laid off under the terms of the current collective bargaining agreement. To offset the reduction of these two police officers, the D.A.R.E program will be eliminated to allow for the move of the D.A.R.E. officer back on to the street for regular patrol duties.

Along with these significant reductions in expenditures, the 2010 budget also contains increases in fees. These include a $.20 per 1000 gallon water user rate increase, a $.28 per 1000 gallon sewer rate increase, and a $.15 per 1000 gallon CIS rate increase effective January 1, 2010, to balance the Water/Sewer Operating Fund. An additional $.25 per 1000 gallon water user rate increase will become effective May 1, 2010, to reflect an expected DuPage Water Commission rate increase. Increases are also being implemented for vehicle sticker fees, liquor license applications, CPR training classes and commuter parking lot permit fees.

2010 Budget Highlights

Personnel Expenditure Reduction Plan approved by the Village Board in Fall 2009 ($929,300 reduction in personnel expenditures between September 2009 and December 2010).

General Fund revenue decrease of 8.6 percent or $1,275,940; General Fund expenditure decrease of 5.2 percent or $781,634.

Projected General Fund 2010 year end fund balance is $3,050,286, or 2.61months of reserve funding. Past fiscal policy has been to keep three months of expenditures for reserve funding.

Water and Sewer Operating Fund projected year end fund balance is $404,471, or 0.96 months of reserve funding. Past fiscal policy has been to keep $1million in reserve funding.

A bond issuance to pay for Foster Avenue road improvement ($2.8 million) and water main replacement ($1.2 million). The Village will participate in the federal Build America Bond program, allowing for a 35 percent discount on repayment of the interest portion of the bonds.